In making this decision, the Executive Council took into account the expected inflation in the upcoming period and its factors, as well as the recent mitigation of monetary policy, NBS reports.
The Central Bank notes that inflationary pressure was low in the conditions of strong economic growth.
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Inflation continued to reach its targets, and in September this figure was 2.1 percent, and was projected to be low and stable within the target range by 3.0 percent plus / minus 1.5 percentage points at the end of the project period in accordance with the central projection of November, or over the next two years .
NBS reports that the medium-term inflation trend is determined primarily by the gradual increase in aggregate demand.
"The financial sector and the economy expect the price stability to be achieved in the forthcoming period, reflecting expectations of inflation expectations by 3.0 percent a year earlier and two years ago," a statement reads.
According to the Executive Board, the effect of the monetary policy prior facilitation will accelerate economic growth in the last ten years and will increase by 4.5% year-on-year.
They emphasize the high share of economic growth, which in the future will come from investments that will further increase the export of the processing industry.
Growth of investment will be provided by favorable financing conditions and growth of credit activity. Also, the net inflow of foreign direct investment, which fully replenishes the current account deficit, has had a positive impact on export growth and in the mid-term, the downward trend in external imbalances.
The Executive Board considers it necessary to be careful about the monetary policy, first of all, taking into account developments in the international arena.
The world oil prices will not change, so its movement is expected by the end of 2018 by the end of 2018, and will be significantly lower than by the end of 2019. NBS reports that inflation in the international arena will increase considerably due to the high oil prices in the world market this year.
By the end of the year, the European Central Bank is expected to complete the quantitative easing program, which may increase the reference interest rates in the US Federal Reserve System and reflect capital flows to developing countries.
In addition, the rise in international trade protectionism has increased the uncertainty in the international financial market, which shows investors are ready to invest. Nevertheless, the Executive Committee has increased due to the favorable macroeconomic indicators and prospects for the future potential adverse effects of our economy on the international environment.
The Executive Board today adopted a report on inflation in November, which will be available on November 16.
The next meeting of the Executive Council, which will take decision on the reference percentage rate, will be held on December 6th.